PSP Projects
Stock Snapshot
Price Performance
Vista Outlook
Basis of our Recommendation
PSP Projects is positioned for stable growth, supported by a robust order book and strategic partnerships, particularly with the Adani Group. Management's confidence in achieving a revenue CAGR of 34% over FY26-28E is underpinned by a strong bid pipeline and a focus on high-margin projects. While the company anticipates EBITDA margins to normalize to 7-8% in the latter half of FY27, challenges such as rising employee costs and concentration risk from Adani projects remain. The infrastructure sector's expansion, driven by government initiatives and increased private capital, aligns with Vista's forecast of consistent revenue growth and stable margins. However, potential headwinds from competitive pricing pressures and geopolitical uncertainties could impact execution timelines. Over the next 12-24 months, PSP Projects should capitalize on its strong order visibility and strategic focus on urban infrastructure, while closely monitoring cost dynamics and project execution risks
Why We Like This Stock
- Robust order book of INR 132.5bn provides strong revenue visibility and supports management's growth projections
- Strategic partnership with the Adani Group enhances access to large-scale projects and potential margin improvement
- Focus on high-margin construction phases and operational efficiencies is expected to stabilize profit margins
Things To Watch Out For
- Rising employee costs and competitive pricing pressures could squeeze margins and impact profitability
- Heavy reliance on Adani Group projects poses a concentration risk that may affect revenue stability
- Geopolitical uncertainties and potential delays in project execution could hinder growth prospects
Key Parameters
Financial Snapshot
View Technicals Analysis →| Actuals | Forecast | ||||
|---|---|---|---|---|---|
| FY24 | FY25 | FY26 | FY27 | FY28 | |
| Revenue (Cr.) | 2,506 | 2,512 | 3,149 | 3,660 | 4,314 |
| Profit Before Tax (Cr.) | 168 | 83 | 75 | 87 | 113 |
| PBT Margin | 6.7% | 3.3% | 2.4% | 2.4% | 2.6% |
| Net Profit (Cr.) | 116 | 50 | 39 | 66 | 85 |
| Earnings Per Share | 29.4 | 12.6 | 9.9 | 16.5 | 21.4 |
Analyst Recommendations
| Broker | Recommendation | Target Price | Date |
|---|---|---|---|
| Elara Capital | ▲ Buy | 1,182 | 31-Jul-2026 |
| Prabhudas Liladhar | ► Accumulate | 1,062 | 31-Jul-2026 |
| Axis Securities | ▲ Buy | 885 | 04-May-2026 |
| ICICI Securities | ► Hold | 790 | 02-May-2026 |
Company Overview
Show Company Profile
PSP Projects Limited, a construction company, provides construction and allied services for industrial, institutional, commercial, residential, hospitality, hospital, and landmark government projects in India. It constructs industrial buildings for pharmaceutical plants, food processing units, engineering, manufacturing and processing facilities; and buildings for hospitals and healthcare services, educational institutes, shopping malls, hospitality services, and corporate offices. The company also undertakes government projects and government residential projects; and constructs buildings for group housing and townships and bespoke luxury homes, as well as independent residences for select private customers. In addition, the company designs, civil works, MEP (mechanical, electrical, and plumbing) services, façade development, interior fit-outs, and allied offerings. PSP Projects Limited was incorporated in 2008 and is headquartered in Ahmedabad, India.